What Happens To Gold And Silver Next? Look Out Below?

Youre spot on about the price action being boring just watching it bleed to gain some back and bleed it off again. Its like the movie Ground Hog Day just happening over and over and over again.

It's fascinating how gold and silver pundits assign animate qualities to those metals: They "defend" a specific price or "bust through" a ceiling or "tactically retreat". Very interesting.

WELL..... Fed day came and went,,, and nothing much happened. It was a sleeper for almost all assets.

For one, I don't think we get too much in any asset class. Not all market participants are active right now so things are choppy. That's not too say there are some active parts of the market. But we might be needing more participation in the PM market, as an example, before we can get going.

Lets look at our proxies

GLD- higher high, lower low. While it is still in the gap, it did attempt to revert into the 7/19 before pulling back up later in the day. I look at that price action and it smacks of indecision and no one really having an upper hand for the moment.

SLV- Silver showed us today just how weak, anemic and dangerous it would be to be buying even at these levels. For those of you following at home, pull your chart up. Silver today dropped and actually filled and was working on closing its gap from 7/19 before it reversed. That's not price action you want to see, you don't want to see gaps get filled in reverse if you are looking for higher prices or even for a floor.

For today, SLV- higher high, lower low.

Only time will snap this range. That's pretty much where we stand, waiting and waiting,, allowing time to sort things out.

@demarco

Yes, I think that's the SAFEST thing to do now. Bullion coins offer no sort of cushion and I feel will be the last coins to rebound in price, whereas proof silver and gold coins, while YES they will drop in price, it will not be so violent and painful and will be the first coins to stabilize and gain in value once the picture is more clear as to what happens with gold and silver.

Now, if you are straight up collecting coins, such as myself looking to plug holes in say Somalian elephants, and I am not stacking but just collecting, the price drop helps and so in that way its not terrible. But if one is buying to investment and stacking, bullion is not the way to go. You need coins with numismatic value such as proof. That's not to say that other categories wont work either, I think many of the uncirculated silver and gold from like the US Mint and RCM also will do well.

Ya that's pretty much all I buy now are proofs in some form or another with a few bullion coins if I happen to like them but not many.

I don't collect coins for profit. That said, I feel better buying proofs because they have got a bit of a cushion in the form of numismatic value. Contrast with pure bullion coins where you're pretty much a slave to the commodities market.

Brucec,
I agree with you completely.

Anyone notice how flat silver is? There's just no recovery whatsoever. You get dramatic drops in value down to $20 and then it just sits there for weeks on end.